Paper Sector Demands 5% GST on Paper, Paperboard to Avoid Inverted Duty Structure

The paper industry has urged the government to fix GST at 5% on paper and paperboard to prevent inverted duty structure issues where input tax rates exceed output tax rates, leading to tax credit accumulation and financial distress. The sector highlights that the current higher GST on paper compared to raw materials is harming competitiveness and asks for relief to stabilize industry operations, boost exports, and ensure sustainable growth.